First Solar Fallout Deals Crushing Blow to Speculative Solar Sector

First Solar Inc. (NASDAQ: FSLR) is leading shares lower this morning. The company has taken at least two severe analyst downgrades this morning. That is on the heels of a poor sales figure and guidance that does nothing to excite the world of alternative energy investors.

The big issue is not just the drop in shares of First Solar. The larger issue is the fallout from the report. Many solar stocks have rebounded massively, to the tune of 50% or much more, since President Obama was reelected, and the sector hope is that free money or cheap money will keep making it into the alternative energy sector.

Here is the solar sector fallout we are seeing elsewhere this morning:

SolarCity Corp. (NASDAQ: SCTY) had been one of the top recent IPOs and is up over 40% year to date. Yet it is down 2.5% at $16.97 so far today.